Crypto Market Bleeding As US Bombs Iran

News of US military action against Iran sparked panic in the crypto market, causing the liquidation of nearly US$1 billion in 24 hours.

Based on information we quoted from Beincrypto media, Bitcoin plunged from US$108,000 to US$103,500, down more than 4%, while altcoins such as Pi Network and Solana experienced a more severe decline.

Factors Causing Market Volatility

Geopolitical tensions related to the potential escalation of the conflict are the main triggers of volatility. Analysts warn that this conflict risks increasing oil prices and global inflation if the situation worsens.

Liquidation Details in the Market

According to Coinglass, the liquidation occurred very quickly, with most assets being wiped out in less than an hour, causing the market to shrink by around 8% in a day.

Effect on Bitcoin

Bitcoin experienced a sharp drop of 4% from US$108,000 to US$103,500 in the hours after the news broke.

Altcoin Conditions

Pi Network plunged 16% in an hour. Solana and Cardano also took a hit, each dropping around 5% in a short period of time.

Relationship to Oil Prices and Inflation

JP Morgan warned that if tensions persist, oil prices could spike, fueling inflation. This could potentially prompt the Fed to delay a rate cut, which would further depress the crypto market.

Comparison to Stock Markets

The US stock market showed a more mixed response. Despite the initial weakness, blue-chip stocks were relatively stable compared to crypto.

The full impact will depend on the development of the conflict and the market reports the following day.

Analyst Perspectives and Projections

Analysts highlighted several things to watch:

• Rising oil prices due to the conflict.
• Potential spike in inflation based on US CPI data.
• The Fed’s policy, whether to remain loose or shift to an aggressive stance.
• The likelihood of a crypto market recovery after the massive sell-off.